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2 Beliefs About Disability People insure — Home Cars Life Insurance Health Insurance But they don't think about insuring or protecting their income.

3 The Causes of Disability May Not Be What You Think Disability can be caused by an injury, but … Can also be caused by common illnesses or conditions such as pregnancy or mental disorders.

4 Think For A Moment…… What happens if you become ill or injured and cannot work? What if you are disabled for 3 months or longer? These are just a few examples of the need for Short Term Disability.

5 Smart Financial Planning Why get Disability insurance? Can you depend on … Worker's Compensation? Only available for job-related sickness or injury Social Security disability payments? Benefit waiting period is six months, not provided for a short term period Many denied the first time they apply; process can take years Long Term Disability? A 6 month waiting period applies

6 How Short Term Disability Works Short Term Disability (STD) pays a benefit in the event you are unable to perform your regular full-time duties, and you suffer a loss of income due to injury or illness. An STD benefit replaces a portion of your income, providing funds to help pay your bills and living expenses. The STD benefit provides a percentage of your monthly gross income. A waiting period applies before the benefit is payable. The waiting period can be 7 to 30 days. Short Term Disability provides a bridge from the waiting period to Long Term Disability (6 months waiting period).

7 STD verses FMLA/Leave Time While you may apply for Family Medical Leave or some other type of leave and still have your job to return to, do you have accrued time to provide income? Or will your accrued time run out? If you are not in a pay status, you will lose your benefit coverage, which you need during a disability more than ever. How do you pay for continuance of medical coverage with all the other expenses….mortgage, car payment, etc? Without supplemental income, YOU CAN’T !!!!

8 How STD Is Calculated The weekly STD benefit amount is determined by multiplying your earnings by the specified benefit percentage. Example: Monthly gross earnings = $2,000 Assumed STD benefit percentage = 60% ( may be higher pecentage) Benefit Income = $1,200 The income from an STD benefit is non-taxable. Employees may purchase the benefit though convenient post –taxed deductions.

9 No Pre-Existing Condition Short Term Disability does not provide a penalty if you have a pre-existing issue; h owever You may be required to provide evidence of insurability if you decline the benefit during your eligibility period.

10 Requirements to Add the Short Term Disability Benefit Voluntary employee purchased benefit. (employee pays) 25% participation of total employee population required. Example: 730 employees x 25% = 184 participants

11 Is not having STD worth the gamble?